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Whenever Petrobras (PBR -6.3%) looks ready to turn the corner, the Brazilian government seems to...

Whenever Petrobras (PBR -6.3%) looks ready to turn the corner, the Brazilian government seems to do something to spoil it. This time, the decision to require PBR to participate in the Libra oilfield auction has the stock on its heels. As UBS explains, PBR will have to pay 4.5B reais to Brazil by year's end, and "investors seem afraid of super-regulation/intervention" as PBR needs to commit $100B in capex.
Comments (5)
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Petrobras recently signed many contracts which will enable increased production. We will not see that increased production soon, but in the longer run that is a good change.
    5 Jul 2013, 03:07 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (560) | Send Message
     
    PBR is almost a private business that is run by the Government. The government makes demands on the front end and regulates prices on the back end. The potential for enormous profits exists in Brazil, but as long as the government is controlling the business, I won’t consider purchasing PBR stock.
    5 Jul 2013, 03:20 PM Reply Like
  • aadamiani
    , contributor
    Comments (54) | Send Message
     
    And quote "The government expects an upfront payment of at least 15B reais ($7B) from the winner"
    This is the problem with Brazil and why investors and Brazilians are angry, this payment goes straight to the pockets of the politicians to keep feeding the corruption!
    5 Jul 2013, 04:25 PM Reply Like
  • giana
    , contributor
    Comment (1) | Send Message
     
    The government needs money for the World Cup and the following year the Olympics. They will profit substainally with all the activity
    And publicity. Buy and hold for 18 months. It just might double at the current price of $12.00 but stocks all have unforseen risk.
    Buy what you can afford to lose. If you make money then your lucky!
    5 Jul 2013, 04:46 PM Reply Like
  • jerry hyer
    , contributor
    Comments (30) | Send Message
     
    If I could get rid of it I would, I bought it at 35 and I'm stuck. I can only hope for the best
    6 Jul 2013, 02:05 AM Reply Like
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